GuestLogix Inc.

GuestLogix Inc.

November 11, 2013 16:00 ET

GuestLogix Achieves Third Sequential Quarter of Record Revenue

36% Increase in Year-over-Year Revenue As Company Remains on Solid Growth Path

TORONTO, ONTARIO--(Marketwired - Nov. 11, 2013) - GuestLogix Inc. (TSX:GXI), the leading global provider of onboard retail and payment technology to airlines and the passenger travel industry, today announced its financial and operational results for the three and nine month periods ended September 30, 2013. All financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in U.S. dollars.

"GuestLogix continues to demonstrate that we have moved back into a strong growth position. Our third quarter saw several major achievements that will significantly add to our top and bottom lines in the quarters ahead. We saw growth in all three geographic regions as well as our Global Rail division, success within our in-flight entertainment partnership agreements as well as the establishment of a global partnership with NCR, one of the largest global retail technology companies," said Brett Proud, President & CEO of GuestLogix. "We achieved sequential year-over-year growth of 36% in our revenue performance and remain on track for strengthened EBITDA results moving forward."

Proud continued: "Our contract win with the largest airline in Asia - China Southern, Scandinavia's largest regional airline - Wideroe, Air Canada Rouge, and our first rail customer in North America with Rocky Mountaineer, demonstrates that our team remains committed to winning new business and retaining our leadership position across the global travel industry. Subsequent to quarter end, we announced our global partnership with retail technology giant NCR which will prove to be one of the most significant ventures the Company has ever embarked on. This global partnership will enable GuestLogix to leverage its transaction processing success to off-board travel touch points. Although we are proud of these results, we know this new and lucrative chapter for GuestLogix has only just begun."

Q3 F2013 Financial Summary
Revenue of $8.0 million, compared to $5.9 million in Q3 F2012
Operating expenses(1) of $8.5 million, compared to $8.2 million in Q3 F2012
EBITDA(2) of $0.3 million, compared to $(2.0) million in Q3 F2012
Net loss of $(1.0) million, compared to $(2.0) million in Q3 F2012
Q3 F2013 Operational Highlights
Increasing the Number of Transactions that we process
Signed multi-year agreement with Asia's largest airline, China Southern
Signed agreement with Momentum Services and Eurostar for complete Merchant of Record Services
Signed multi-year agreement with Air Canada Rouge to support in-flight entertainment monetization
Signed multi-year agreement with Scandinavia's largest regional airline, Wideroe
Signed multi-year agreement with North American leisure rail carrier, Rocky Mountaineer
Subsequent to quarter end, signed ten-year partnership with leading retail technology firm, NCR, to integrate transaction processing engine into airport kiosks and mobile check-in applications
Subsequent to quarter end, announced multi-year renewal with Middle Eastern low cost carrier, flydubai
Increasing the Average Transaction Value
China Southern agreement incorporates GuestLogix' seat upgrade auction technology which significantly increases the average transaction value for that customer
NCR partnership will increase product mix potential including baggage fees, lounge access, seat upgrades and destination-based content
Earning More Fees per Transaction
Agreement with China Southern includes funds reconciliation and OnTouch® Analytics platform
Momentum Services and Eurostar agreement adds Merchant of Record Services to current agreement
Agreement with Rocky Mountaineer includes funds reconciliation and OnTouch® Analytics platform
NCR partnership enables upselling to airlines for OnTouch® Analytics
Corporate Achievements
Completed private placement of common shares for gross proceeds of CAD $4.0 million
Key Operating Metrics
Q3 F2013 Q2 F2013 Q3 F2012 9 months F2013 9 months F2012
Gross Transaction Value (GTV) processed in the period $241M $227M $146M $690M $441M
Total Revenue as a percentage of GTV 3.3% 3.2% 4.0% 3.2% 4.0%
Financial Summary
Q3 F2013 Q2 F2013 Q3 F2012 9 months F2013 9 months F2012
Revenue $8.0M $7.2M $5.9M $22.2M $17.6M
Operating Expenses(1) $8.5M $7.5M $8.2M $23.6M $20.5M
EBITDA(2) $0.3M $0.7M $(2.0)M $1.3M $(2.1)M
Net Income (Loss) $(1.0)M $0.8M $(2.0)M $(1.8)M $(2.4)M
Net Income (Loss) Per Share $(0.01) $0.01 $(0.03) $(0.02) $(0.04)
A complete set of financial statements and Management's Discussion and Analysis for the three and nine month periods ended September 30, 2013 will be available at and
(1)Includes Depreciation, Amortization, and Stock-Based Compensation Expense, but excludes Interest and Foreign Exchange.
(2) Defined as Earnings before Interest, Taxes, Depreciation, Amortization, Stock-Based Compensation Expense and Foreign Exchange.

Q3 F2013 Conference Call Details

GuestLogix will host a conference call on Monday November 11th, 2013 at 4:30 p.m. Eastern Time to discuss its 2013 third quarter financial and operational results as well as the Company's outlook for the remainder of the fiscal year. To access the conference call, please dial 1-862-255-5346 or toll free at 1-888-567-1602. A replay of the call will be available at

About GuestLogix

GuestLogix Inc. (TSX:GXI), the leading global provider of onboard retail and payment technology brings over a decade of expertise as a trusted onboard transaction processing partner to airlines, rail operators and the passenger travel industry. GuestLogix helps its customers to create, manage, and control onboard retail environments tailored to their needs and their passengers for a truly personalized experience. The Company is partnered with global leaders in catering, duty-free and in-flight entertainment, offering complete onboard retailing services to airlines and rail operators worldwide. GuestLogix' global headquarters and centre for product innovation is located in Toronto, with regional head offices located in Dallas, London and Hong Kong. More information is available at

Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations of GuestLogix' performance which involve risks and uncertainties associated with GuestLogix' business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect GuestLogix' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations as well as the matters discussed under "Risks and Uncertainties" in the GuestLogix management's discussion and analysis filed November 11, 2013 with the regulatory authorities. GuestLogix assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, other than as required by applicable laws.

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